Shares of Yuma Energy Inc. soared 79% in active premarket trading Wednesday, after the oil and natural-gas exploration and production company said investment advisor and hedge fund Red Mountain Capital Partners LLC bought up all of Yuma’s senior secured debt ahead of an expected “comprehensive” debt restructuring, totaling about $35 million. “We are pleased to have the opportunity to work with Red Mountain in an effort to realign our outstanding debt with the combined goal of establishing a meaningful path forward for the company,” said Yuma Chief Executive Anthony Schnur in a statement late Tuesday. “This is the first step toward strengthening our capital base, improving our liquidity and positioning the company to pursue growth opportunities.” Meanwhile, Yuma said “substantial risk continues to exist” that it will be unable to reach agreements on key issues envisioned by agreement with Red Mountain or meet conditions necessary to effect any debt or equity restructuring. The stock has tumbled 41% over the past three months, while the S&P 500 has gained 3.3%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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